Commercial real estate in the US accounts for 12 billion square feet. But only 67% is utilized. Changing work patterns are driving many companies to re-evaluate their real estate footprint and adapt to lower demand for physical space.

Smart sensors can detect building occupants' locations, count, and movements with extreme precision, while maintaining individual privacy. Based on the data, CRE companies can reconfigure building layout or plan for changing demand. They can also help tenants make data-based decisions to adjust office layout, add or subtract meeting rooms, or implement hotdesking strategies.

In a retail environment, sensor-based footpath tracking can allow store managers to adjust product placement, plan staff support for peak times, and make inventory adjustments to match customer demand.

What is Smart Cities Smart cities initiatives are being implemented all over the world. Asia-Pacific is no exception. Singapore is actively pushing its Smart Nation programmes; India has its Smart Cities Mission, which aims to turn 100 cities all over the country into smart cities. More than 500 cities in China have started or will start their smart city transformation in 2017. Japan and South Korea also have their own smart cities, even though the scale might not be on the same level compared to China and India.

The evolution of smart cities will prompt the need for smart property development and management, giving a boost to PropTech. For example, smart cities are highly data-driven, as extensive data collection and analysis are necessary to fully realise the benefits of smart cities. This would create opportunities for commercial real estate players to act on data they possess to make more informed decisions regarding which locations to invest in, what the appropriate tenant mix would be, or how to improve valuation methodologies. These questions could be answered effectively with the support of PropTech start-ups that are specialised in predictive analytics.

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